Chapter 15 - § 15.6 • DEFENSES
| Jurisdiction | Colorado |
§ 15.6.1—Consent, Defense of Land, and Self-Defense
Consent of the plaintiff, consent of a third person with authority to give consent for the plaintiff, defense of land or chattels, and self-defense or defense of another are all defenses to the tort of conversion.45
§ 15.6.2—Qualified Refusal
Qualified refusal may be a defense to a claim for conversion under certain circumstances. A "qualified refusal" occurs where the defendant responds to the plaintiff's demand for return of his or her property with a refusal that "occurs under conditions which render that refusal reasonable"46 — for instance, when such refusal is "asserted in good faith and in recognition of the rights of the party to whom the property lawfully belongs."47 In Glenn Arms Associates,48 a refusal was held to be insufficient to meet this rule when the defendants merely asserted, without support, that they were entitled to retain the plaintiff's funds.49 A bailee who wrongfully withholds bailed goods from the bailor may be liable for conversion, but a bailee who imposes reasonable conditions on the return of bailed property will not be liable for conversion.50
§ 15.6.3—Statute of Limitations
The statute of limitation for conversion is three years.51 "A cause of action for wrongful possession of personal property, goods, or chattels shall accrue at the time the wrongful possession is discovered or should have been discovered by the exercise of reasonable diligence."52
§ 15.6.4—Economic Loss Rule
A party suffering only economic loss from the breach of an express or implied contractual duty must also show an independent duty of care under tort law to avoid the barring of the tort claim by the economic loss rule.53 In Rhino Fund,54 the court explained that because the parties' contract provided no remedy for conversion, the economic loss rule did not bar a claim for conversion where the conversion arose from the defendant's breach of a contractual obligation to handle the plaintiff's funds a certain way.
§ 15.6.5—Designation of Nonparty at Fault
Pursuant to Colorado's Designation of Nonparty at Fault statute, in civil cases a tort defendant is only liable for "an amount . . . represented by the degree of percentage of negligence or fault attributable to such defendant . . . ."55 A defendant may therefor designate a nonparty at fault who is either "wholly or partially at fault" for causing the damages alleged by the plaintiff.56 A defendant wishing to designate a person or entity as a nonparty at fault must do so "within 90 days following commencement of the action unless the court determines that a longer period is necessary."57 The statute specifies the required form, contents, and requirements of the notice. A defendant may designate an unidentified or unknown person.58 The designated nonparty may also be immune from suit.59 If the designated non-party is a licensed professional and his or her alleged fault amounts to professional malpractice, the practitioner would be well advised to determine whether the designation must be accompanied by a certificate of review.60
§ 15.6.6—Governmental Immunity
With the exception of certain specified activities that are exempt from it, the Colorado Governmental Immunity Act (CGIA) grants public entities and public employees immunity from claims for injury that lie in tort or could lie in tort, regardless of the type of action or the form of relief chosen by the claimant.61 Public employees are immune...
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